How outsourcing can help streamline contractor management


By Aaron Govindasamy, Director, Conserve
Wednesday, 28 August, 2019

How outsourcing can help streamline contractor management

As business leaders, we are always searching for ways to save time. It’s one of the most precious resources at our disposal and, unfortunately, one that we never have enough of. As such, we are constantly in search of ways to be more efficient.

Contractor management can be a complex and drawn-out process. It involves collaborating with multiple departments to establish overarching business goals, set expectations and define ‘acceptable’ risk — and that’s before any contract is drafted. We need to juggle the needs of different types of contractors from a variety of industries while ensuring they remain compliant.

Outsourcing contract management to a specialist firm can help reduce overall risk exposure and improve efficiency, as they can implement processes they’ve refined over years of service to multiple industries and shoulder the administrative burden. They also have experience managing high volumes of contractors, using technology and automation to reduce human error and produce consistent results.

The rapid rise in the contingent workforce

The way businesses want to work and engage workers is changing. Gone are the days of a full-time, location-specific workforce. From one end of the spectrum, businesses need to meet the demands of fluctuating workloads, project-specific talent and headcount allowances. From the other, workers want more freedom (work/life balance) and they generally don’t want to be tied to one employer or location. This answer, then, is a contingent workforce.

A contingent workforce is flexible and scalable, allowing us to reduce costs and maximise output; so it’s no surprise it’s on the rise. It’s predicted that by 2020, 25% of Australia’s workforce will be contingent. Win-win, right? For the most part, yes; however, with a larger contingent workforce you must factor in a greater risk exposure and internal administrative burden.

When to consider outsourcing contractor management

Managing contractors in-house can be challenging if it’s not an area you specialise in. You need to ensure your business can effectively govern its contingent workforce’s safety and legal rights and obligations. Contracts need to be in place and legally binding and teams need to navigate quality assurance protocols, pre-qualification checks, insurance policies and safety systems to protect your business from increased risk exposure brought on by non-regulation-compliant contractors.

Ultimately, outsourcing contractor management should be considered when:

  • contractor administration tasks become too time-consuming,
  • resources are being pulled from other core business priorities,
  • there is a more cost-efficient way to manage contractors, or
  • there is any doubt in your regulatory compliance or due diligence processes.

The benefits of outsourcing contractor management

Outsourcing contractor management can help streamline the process of using contractors, allowing you to:

  • save time — spend less time chasing contractors for compliance documentation;
  • save money — spend less money on administration and management;
  • reduce liability — reducing your risk of exposure;
  • maximise resources — outsource non-essential tasks so your staff can focus on generating revenue and adding core business value;
  • increase visibility — have a detailed understanding of the compliance status of your contingent workforce;
  • boost efficiency — use proven processes to manage contractors efficiently.

Outsourcing makes business sense

The contingent workforce is only going to grow as Australian businesses use more contractors. So why make building your business more complicated than it needs to be?

Specialist vendors provide expertise, cost savings, flexibility and greater efficiencies, while you scale your company in a way that delivers against your core business objectives.

Aaron Govindasamy, Director, Conserve

Image credit: ©

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